Friday, 16 February 2018

Tuesday, 13 February 2018

WISHING
EVERYONE A HAPPY SHIVRATRI.

MAY LORD SHIVA’S BULL HELP OUR STOCK MARKETS IN
2018. DUE TO OVERWHELMING RESPONSE TO MY BLOG, I HAVE STARTED OFFERING
CUSTOMIZED REPORTS/INPUTS ON COMPANIES OF YOUR CHOICE. FOR MORE DETAILS, PLEASE
EMAIL TO: suhani.adilabadkar@gmail.com

Monday, 12 February 2018

RBI MONETARY POLICY

BSE Sensex & Nifty were all set & ready on the diving
plank even before the Reserve Bank Of India could announce its sixth bi-monthly
monetary policy and by the end of it both indices closed lower by 113 points
and 0.21% respectively on 7th February. Things would have been slightly
different had the whole of MPC voted along with Dr Michael Debabrata Patra for
a 25 basis point rate hike. Markets
would have gone for a double dip after the brutal LTCG budget strike. And along with the LTCG strike also came the
30 basis point fiscal slippage making it very easy for the central bank to
maintain its status quo for a third time in a row and give a sense of
predictability to the whole volatile economic scenario.

The Reserve Bank Of India, kept its rates on hold with Repo
Rate unchanged at 6% and Reverse Repo Rate at 5.75% under the LAF. The Bank
Rate and Marginal Standing Facility remains at 6.25%. As per the RBI, the
liquidity continues to be in surplus and is moving towards neutrality. The Central
Bank expects inflation to hover between 5.10% -5.60% in the first half of 2018
and settle down around 4.5% in the second half due to low base effect and
normal monsoon expectations. The growth
prospects are even more optimistic with GVA moving from 6.60% in 2017-18 to
7.20% in 2018-19 due to higher investment & credit off take, exports
gathering further momentum along with capital goods production and
recapitalization of PSU banks.

The Monetary Policy was cautious, heavily data driven,
predictable and optimistic with respect to both global and domestic growth.
With equity markets being roiled every day, crude prices moving both sideways
along with uncertain domestic fiscal discipline, maintaining its status quo was
the right thing to do. But Rising rates definitely looks certain with double
digit credit growth, corporate earnings recovery and rural & infrastructure
budget push. May be, early next year we’ll both Raise the rates and the cricket
world cup.

About Me

I am a registered Research Analyst With SEBI with a NISM analyst certification from NSE, India. Educational qualification includes a PGDBA in Finance, MS in Finance, Fellowship from Insurance Institute of India.